July home loan snapshot: Rates have increased, but prices have been decreasing

people on their laptops while in their homes

As the Reserve Bank of Australia (RBA) raised the official cash rate again in June - up from 0.35% to 0.85% - we saw banks again revising their variable and fixed rates. 

Of the 96 lenders we track, 74 passed on the full 0.50% rate hike to their customers, 6 lenders raised rates only partially, and the remaining 2 increased their rates by more than 0.50%. 

To further spice things up, several Corelogic, Domain and CBA reports say that property prices have begun to slow down

As interest rates continue to rise across the board, we’ve said goodbye to the days with rates below 2% p.a. in both fixed and variable rates.

If that isn’t disheartening enough, economists have said to expect another 0.50% official cash rate jump in July, which would put us at 1.35%. That means we may have to say goodbye to rates below a ‘3’. No matter what happens over the next two months, home loan rates are still relatively low historically speaking, and some research can ensure that you pick up a decent rate. Also, NSW has introduced a new land tax option to replace stamp duty for first time home buyers, which could help new home buyers enter the market quicker. 

So what are the lowest and average home loan rates in our database? What do variable rates and fixed rates look like after the RBA hike? Find out below.

Recent fixed and variable rate movements

Since the RBA lifted the cash rate in June, 74 of the 96 lenders in the Mozo database have raised their variable rates in line with the RBA.

Some of the notable changes from the last month include.

  • All big four banks raised interest rates by 50 basis points, in line with the new cash rate.
  • MOVE Bank increased rates by 50 basis points, but its
    Straightforward Home Loan rates only increased by 40 basis points.
  • GMCU increased variable rates by 45 basis points rather than the full 50 basis points.

Looking at fixed rates, some notable changes include:

  • Athena withdrew all its fixed interest rate options.
  • HSBC significantly hiked its fixed rates by 90 to 150 basis points, depending on the term date.
  • Macquarie also raised its fixed rates by 110 to 166 basis points, depending on the term.

Lowest home loan rates

Rates might have increased across the board, but there are still lenders offering home loan rates below 3% p.a. in our database. Here’s a look at the lowest variable and fixed mortgage rates (P&I, LVR <80%) among lenders we track.

Lowest variable rates — Mozo database (July 1, 2022)^^

LenderLoanVariable rate
Unity Bank

First Home Buyer Variable Rate Special2.38% p.a. (2.40% p.a. comparison rate*)
Easy Street

Street Smart Variable Home Loan2.39% p.a. (2.44% p.a. comparison rate*)
Credit Union SA

Variable Rate Home Loan Special Offer2.44% p.a. (2.88% p.a. comparison rate*)
P&N Bank

& Basic Home Loan2.44% p.a. (2.44% p.a. comparison rate*)
Southern Cross Credit Union

Basic Home Loan Special Offer2.48% p.a. (2.53% p.a. comparison rate*)

Lowest and average fixed rates — Mozo database (July 1, 2022)^^

TermRate leaderFixed rate
1-yearBank of Us2.99% p.a. (2.79% p.a. comparison rate*)
2-yearThe Capricornian3.39% p.a. (4.58% p.a. comparison rate*)
3-yearFamily First Credit
Union
3.79% p.a. (4.21% p.a. comparison rate*)
4-yearSouthern Cross
Credit Union
4.59% p.a. (3.55% p.a. comparison rate*)
5-yearSouthern Cross
Credit Union
4.79% p.a. (3.75% p.a. comparison rate*)

Remember that these are the lowest rates available in our database for borrowers with an <80% LVR. More competitive rates tend to be available for borrowers with LVRs below 70% and 60%.

Are you thinking about a property or looking to refinance your existing mortgage? Use Mozo’s handy home loan comparison table to examine lenders side-by-side.

^^Interest rates are based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR. Check out our dedicated Australian home loan statistics page for more information on average mortgage rates.

Home loan comparisons on Mozo - last updated 13 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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